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Evercore ISI added Planet Fitness (NYSE:PLNT) to the firm’s tactical outperform list just ahead of the earnings report due out on Tuesday.
Analyst Warren Cheng pointed to two key trends in consumer spending that could support Planet Fitness (PLNT).
“We like PLNT for its ability to potentially benefit from an inflation trade-down (consumers moving from their $40-80 gyms to Planet Fitness’ $10-25/mo membership), and also for the shift-to-Experiences-from-Things trade which we think will gain even more steam over the summer,” he advised.
Planet Fitness is tipped by Evercore to deliver a significant earnings beat with its Q1 report on the back of a sharp recovery in member joins in February and March.
Shares of Planet Fitness (PLNT) fell 0.91% in premarket trading and are down more than 19% on a year-to-date basis.
See all the earnings estimates on Planet Fitness and the history of beats vs. misses.
